Your Provident Fund now has new fund managers
Finally, your provident fund now has a chance to earn in excess of the 8.5 % interest rate it earns annually.
The EPFO, which recently invited bids from leading financial players, have zeroed in on HSBC, ICICI Prudential and State Bank of India to manage PF funds. HSBC & ICICI Prudential made the cut on account of quoting the lowest fee of 0.01 % of the fund to be managed. SBI, locked in a race with Reliance, managed to prevail on technical grounds.
However, there is a catch. These fund managers would initially get to manage only the incremental deposits that are made every year, to the tune of around Rs.25,000 crore, which could increase once they are able to deliver better returns.
Update: It seems the EPFO has also approved Reliance Capital as a fund manager, in addition to the above named players.
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